Eurohypo becomes Commerzbank

The European Commission has changed Commerzbank’s state aid plan, telling it to wind down non-core assets in Eurohypo, in an acknowledgement of the difficulty lenders face when it comes to selling large assets in current market conditions. The demise of Eurohypo, formally one of the largest German covered bond issuers and a major advocate of the jumbo covered bond concept, marks the end of an era in the Pfandbrief market’s more recent history.